Should Tariff Reductions be Announced? An Intertemporal Computable General Equilibrium Analysis
In this paper the macro and structural implications of three alternative tariff-reduction strategies are examined. Under the first strategy, which is similar to that adopted in Australia in 1973, the tariff cut is implemented without warning. The second strategy is consistent with the current approach of phasing in tariff cuts according to a previously announced schedule. Under the third strategy the tariff cut is implemented several years after it is announced. We find that the long-run effects of the alternative tariff reduction strategies are similar, but that the adjustment paths are not. Our results suggest that if tariffs are to be reduced then it is preferable to implement the policy without warning. The results emphasise the point that the sooner tariffs are reduced the sooner will the allocative efficiency gains from doing so be realised.
|Date of creation:||Aug 1997|
|Contact details of provider:|| Postal: PO Box 14428, Melbourne, Victoria, 8001|
Phone: 03 9919 1877
Web page: http://www.copsmodels.com/about.htm
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alan A. Powell & Richard H. Snape, 1992.
"The Contribution of Applied General Equilibrium Analysis to Policy Reform in Australia,"
Centre of Policy Studies/IMPACT Centre Working Papers
g-98, Victoria University, Centre of Policy Studies/IMPACT Centre.
- Powell, Alan A. & Snape, Richard H., 1993. "The contribution of applied general equilibrium analysis to policy reform in Australia," Journal of Policy Modeling, Elsevier, vol. 15(4), pages 393-414, August.
- R. G. Gregory, 1976. "The Green Paper on Policies for Manufacturing Industry: A Review," Australian Journal of Management, Australian School of Business, vol. 1(2), pages 51-78, October.
- Lluch, Constantino, 1973. "The extended linear expenditure system," European Economic Review, Elsevier, vol. 4(1), pages 21-32, April.
When requesting a correction, please mention this item's handle: RePEc:cop:wpaper:op-88. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Horridge)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.